Sorry if I wasn't totally clear - please let me explain a few things below:
Neither of the businesses are formally registered as DBAs, their names are not trademarked, and they're simply run as sole proprietorships, with a website linked to a shopping cart/merchant account, and funds being deposited into personal checking accounts. I am, and always have been, the owner of the domain names. OK, so you own, HusbandBusiness.com.... but he owns the cart and the website and any 'contracts' that come through them (sales)... I own husbandbusiness.com (the domain name). But the shopping cart, merchant account, and checking account into which the funds were being deposited... those were all in his name. But, like I said, the business was closed down shortly before our separation, so there is no more shopping cart or merchant account, and his checking account is closed too because he overdrew it and wrote bad checks. Yes, you were clear. And because a judge "could" determine that you gave him the domain names, even if titled in your name, based on his usage with your permission, arguably that would be determined to be his for purposed of distribution - putting your profits at some degree of risk. When we are married, even if things are not titled in the other spouse's name, such as a house we buy, it can be subject to shared distribution as a marital asset if a judge determines that you gifted it to the other spouse or used marital funds to buy it. If you bought the domain after marriage, regardless of titling, it is generally up for sharing if no pre nup. A prenup that said, "any domains in wife's name, bought after marriage, will remain hers, no matter if marital funds were used," COULD change that. However, your prenup does't seem to mention domains specifically, right? If they were yours before marriage, and if the prenup doesn't mention, there could be a devil's arguement that the domain is part of "his" business that you agreed would remain his. An asset of his business. You need to see that these answers are not carved in stone, as a judge (or jury) will see it as he sees fit. When a business goes out of business, it often still has "assets". Will the judge see that domain name as an asset of the biz and/or, will he also find that it became community property? We can't read his mind, we can only try to argue for the answer we want him to give. There is no statute that defines this particular set of facts.
Due to gross mismanagement on my husband's part, we were forced to shut down "his" business shortly before our official separation date. I filed for divorce, and my husband never responded, thus making my divorce case a default divorce.
My question is this: once the divorce is final, can I revive "his" business by slapping up another website and just having all of the funds transferred to my checking account? If it is a different website, No, I want to use the same domain name and just put the website back up. I am sure, if he chose to fight it, you ex would make a good argument that the website (which is an actual thing) is definitely part of his business. It is an identity and a set of code language.
The website is not on the internet right now because the business is defunct. Yes, but it may be, but what about its assets? Who owns them? He would argue that, vis a vis you, he owns the assets. You could perhaps offer to buy those assets, to be safe, or ask the court to rule on it, if you want security and no risk of this popping up its head later, or you can decide to not cross those t's and dot those i's. There are pros and cons to both avenues.
But I would like to put the website back up, under the same domain name, and start selling the same product again. The difference now would be that the shopping cart would be in my name, the merchant account would be in my name, and the funds would be deposited into my checking account. how are you thinking that you are reviving his business? Aren't you really creating a competitor to his business (which isn't even running)? No, not creating a competitor at all. I want to take control of the business. I believe you are saying you want to "take" his business, the one that is not running right now - this could be theft, given your pre-nup. Without the pre-nup, it could be a marital assets, to which he could still be entitled to his share.
I probably wouldn't name my new website the same as his website, however. So I see where you misunderstood me. Same domain name, same business name, different person receiving the money (me). That's the only difference. Sounds like you are definitely taking his property then, you see?
Could he try to enforce that term of the prenup (where it states that the business is supposed to be his) Yes. But I think you could argue that you are not taking his business - you made a new one of your own. But I would not be making a new one. I would be selling the product on a domain name that I own, that I have always owned. My question is how can he enforce ANY term of the prenup, once the divorce is final? What would that entail for him to get a judge to look at the prenup and make sure that the terms are enforced? AND is there any statute of limitations? Once a divorce is final, how long do the parties have to enforce any parts of the prenup that were not enforced by the judge? And in addition to everything, doesn't a judge always have the final say as far as enforcing the terms of a prenup?
even after the final divorce decree is granted? Even though the business is currently defunct? Not if you start your own business. I don't want to start my own business. I want to revive the old business. And the reason for that is because the product already has a good reputation, and the site is still getting many visitors even though the product is not currently being sold.
Could he ask a judge to force me to transfer domain ownership to him? Yes, he can ask, but his business nor he ever owned the domain, You're right. He never owned the domain. so you could argue that that was never his pre-marital business property to begin with. Yes, you're right. I owned the domain before we were married. Mind you, a judge could decide, in equity, that you have him an interest in the domain, since you shared it with him. This is not cut and dried, as I see it. Right, in equity. But since this is a default divorce, there's nothing equitable about it.
Could he also sue me for any money that I made from the website after the divorce was final? One can always sue. But again, only if you are using his business - a domain name is not, in and of itself, a business. It can be an asset, however. OK. But I want to sell the same product on the same domain name as before. If I form an LLC, will this protect me from a lawsuit?
What if I form an LLC and I operate the business under it? Does that protect me? And could there even possibly be a criminal charge against me? It is not clear yet what you plan to do. If you want to be a business that engages in the same sales as he does, YES, I DO. your pre nup does not seem to prohibit making a new business. Just don't take his. Between his business closing down, him not legally owning the domain name ever, and you having a totally new website, your argument is that you are not using his business, but your own. But if you want to be 100% certain, simply use a different domain that he didn't use before. That would be pointless, when there are already so many visitors coming to the domain. It was a very popular product. OR, motion the court for a declaration that the pre-nup meaning does not mean that your domain, that he was permitted to use for his business, becomes his. Ask for a ruling that the domain name that he was allowed to use, was not his business asset, but a borrowed asset. At least then you will know whether or not to proceed with that domain. That makes sense.The thing is that since it is a default divorce, and since he's not participating in it, the way I see it is if the judge asks me about the two businesses, I can just say, "Well, judge, the business that my husband is spposed to own is defunct. So there's nothing to give to him." Currently, that is the truth, so I would not be lying to the judge.But if I ask the judge to grant me the domain name, then the judge may decide to grant it to him... you know?
To be clear, I want to revive the website and sell the same product, with the same name, that my husband was selling. See above. No, I wouldn't take his website, but make a new one. I would likely feel comfortable selling same product. I'd NOT use the name of his business or website. And the Domain is the wild card. If you gave him a delivery trust to use in his business, that was still registered to you but necessary for his business to run - arguably, that asset could be part of his business. Right. That makes sense. I think a judge could rule either way on that one.
Please let me know what my husband's recourse would be. Everything you suggest. And one doesn't need a lawyer to sue. Moreover, it may be easy for him to get a lawyer if you suddenly have a million dollar business that may be partially his, should he win - even if he doesn't have money - because he can pay up after he gets 1/2 the business. Right!! But wouldn't an LLC protect me from having to pay him any money? No, I don't think so - if you 'stole' his property, if the judge decided you stole his property, just changing the title to something doesn't change whose it is. And if the principal of an LLC steals something in the name of the LLC, the LLC structure typically won't insulate. Moreover, remember, an LLC can protect an owner from personal liability for the liabilities of the LLC, but not the LLC itself - he could end up owning the LLC.
He is, by the way, a criminal who was just released from prison after spending a year incarcerated, and he is totally destitute, so I highly doubt that he has the resources to hire an attorney. I understand. But again, he may not need to. What is the chance of creating a business but not using that same name? OR, motioning the court to order that the pre-nup allows you to still keep and use your domain). It is better to sort out these risks before you work you butt off and make a successful go of it, only to have to share with the ex. Totally. Yepper
OK, so given everything that you've said, let me ask you this: what if I still use the domain name, but I call the product something different, with a different business name? I think that would greatly reduce the chances of him winning... and him even trying.... Domain names are usually licensed, right? I mean, you have to pay yearly to keep it. It you don't, someone else can buy it. I think this help you if you decide to us the domain, since, you are the only one that has been paying the fees - and his action in not paying those fees or in anyway involving himself in the domain since the divorce can demonstrate that he did NOT have any semblence of any understanding that the domain was his..... because if he did, he'd have certainly paid for it to not lose it. Does that make sense (I am not a fully domain-name expert, obviously, but my practice also has 1+ domain names that point to my law firm website...)
In other words, the website will still be husbandbusiness.com, A domain is not necessarily the name of the website! You can have 10 domains all pointing to a website..... one domain of which, may or may not be the name of the website. My domain and my website are the same, but I also have another domain pointing to the same website..... Bt you are saying you want to use both domain of his business (but owned/licensed and now paid for by you) and his website name. What about using the domain but changing the website name (which may be your purported 'business name')....which still gets a lot of traffic, but let's say the old business was called, "Super Moisture Lipstick" and the new business is called "Sexy Soft Lipstick." Yes, I think you eliminate much of the risk. Sure, he can squeak about the domain but if it bring the visitor to a different website (diff name on the header of the website, such as "sey soft lipstick") you won't be using HIS website at all, nor his businessname... only the domain name he enjoyed for a while and never paid for or used again after he closed his business. It think the more you can get to show it is not his business at all, being revamped the better. But I can understand wanting to use the domain if it stll has traffic clout of its own.
So same domain name, same product with the same ingredients, just a different name for the product. You mean the business, right? The website header and business name. Different name for the business. But selling it at the husbandbusiness.com domain name, so that I can take advantage of the traffic, and so that I can sell customers a product that they were already interested in buying. Please give me your thoughts on that. As noted above, I think that will reduce some of the original risk of revamping all of his business assets. The domain name is not necessarily his -that is that wildcard - while the other stuff was his. And his actions in failing to pay the fees associated with the domain maintenance, arguaby (so I'd argue, demonstrate that that he either never thought that came with the package after divorce, OR, he abandoned that property. Let's say you hadn't grabbed/continued to pay that license under the theory that it was his - a stranger had every right to grab it. That is because he would have thrown it away, back to the crowds. You just happened to be the person who grabbed it after he abandoned it. Relinquished it.
What do you think? Tons of issues here, but I think you are getting more protection-ist, which is great if this is going to take off.